Food for Thought

[Michael Ludwig]

What are the chances that a new-to-the-industry load broker has their own new customers?
Or, for that matter, what are the chances that a new-to-the-industry carrier has their own new customers?
Doesn't seem logical to me that there are that many new manufacturers/distributors entering the economy to support the number of new load brokers/carriers.

 

[loaders]

I have often thought the same. The only thing that comes to my mind is perhaps an enterprising new carrier who has a relative/good friend with a manufacturing company that will swing some business his way. Same scenario could apply to a new on the scene freight broker with some personal connections. Established carriers and freight brokers might be reluctant to offer credit to a new manufacturing company where these new entrants might be willing to assume additional risks.

 

[jackhole]

What are the chances that a new-to-the-industry load broker has their own new customers?
Or, for that matter, what are the chances that a new-to-the-industry has their own new customers?
Doesn't seem logical to me that there are that many new manufacturers/distributors entering the economy to support the number of new load brokers/carriers.

Please clarify your first two sentences , I get the first sentence but you are saying the same thing in sentence two ?

 

[Freight Broker]

I don't know about the chances... but the new guy/gal is likely beating the phones to death for new business, and if you talk to enough people you're bound to get a YES once in awhile... works for getting girls and freight!

 

[Fr8Guru]

Been doing this for almost 8 years now. 2 different companies - 1 pure brokerage and 1 asset w/ brokerage arm. I can tell you, you see a lot of the same companies being called over and over when you hire new people.

My favourite is the guys who come from one of the bigger brokerages and talks the biggest game about their customer pool and asks for the massive salary cause of the book they can bring. 3 months in, and they are back to pounding the phones looking for new business cause their "great" connections at XYZ company doesn't wanna make a switch or isn't picking up.

Ultimately, back to your original point, everyone ends up calling the same people over and over, new brokers have very little chance of surviving in this market right now.

 

[MLCAR]

cyclical markets make room for new entrants into the industry, when Markets go down, so do carriers and Brokers. Which makes room for new carriers and brokers to pick up the business they leave behind. This carrier bloodbath is surely putting a strain on brokerages too, I'ev seen a few small outfits already fold. When things stabilize that's when we'll see the new players back at it again. So its not really a "new customer" its a "new to us customer".

 

[NotForHire]

blood bath is right.

 

[Freight Broker]

Jim Ryder started his truck rental biz in the depths of the Great Depression in the 1930s... nuff said..

 

[Fr8Guru]

blood bath is right.

Going to be bad by the end of it.

Lots of decent companies going to get caught with their pants down so too speak. Especially when it comes to contract freight, going to be lots of "price decrease" conversations going on.

 

[NotForHire]

every ones is complaining now because not many companies were smart enough to save the profits from the great paying pandemic loads

 

[Michael Ludwig]

Please clarify your first two sentences , I get the first sentence but you are saying the same thing in sentence two ?

Geez, you retire from Erb and now you're the grammar police ?!?!?!?! ... LOL

 

[jackhole]

Geez, you retire from Erb and now you're the grammar police ?!?!?!?! ... LOL

Just speak plain ordinary English so we can all understand : )

 

[Rob]

Just speak plain ordinary English so we can all understand : )

You do realize he is born and raised in the Folk and they are a little different shall we say down there..

 

[VanBroker]

Please clarify your first two sentences , I get the first sentence but you are saying the same thing in sentence two ?

First sentence, broker. Second sentence, carrier. Makes sense to me!

 

[theman]

I did a lot of collaborative and contract business when I was in the biz. Most customers have buying cycles so even if you have the best relationship with them, it doesn't mean they follow. It means you'll likely be invited to the party (almost always have) but with a new company one has to prove oneself over and over again.

Thinking a rep is going to bring anything except bottom-feeder freight within 90 days of hire is naive. It always took me at least close to a year to earn my keep - it's when I stay in one place that it really starts to pay off.

It doesn't matter whether the entity is asset based or non-asset by the way. Most customers have a fit for either, just have to work into the cycle.

 

[loaders]

Many of the asset based “new entrants “ who suddenly appeared within the last 2-3 years, have probably made an OK living just using the load boards. When rates were through the roof many brokers, myself included were posting almost everything we had simply to find available capacity. During that time carriers were setting the rates as high as the market would bear, and it was able to bear quite a bit back then. Lots of freight and rates through the roof…..what a party!,,,I am sure many of the newer players are finding things now to be not quite as easy. If they were smart, they would have used those times of plenty to develop their own customer base.

 

[LrgCar]

Many of the asset based “new entrants “ who suddenly appeared within the last 2-3 years, have probably made an OK living just using the load boards. When rates were through the roof many brokers, myself included were posting almost everything we had simply to find available capacity. During that time carriers were setting the rates as high as the market would bear, and it was able to bear quite a bit back then. Lots of freight and rates through the roof…..what a party!,,,I am sure many of the newer players are finding things now to be not quite as easy. If they were smart, they would have used those times of plenty to develop their own customer base.

Things are a lot more effortless with a good customer base but even now we are seeing customers being blown up with brokers and carriers calling them and it doesn't take too long for them to catch on. Cheap rates seem to be paramount and service isn't really a factor these days so customers are always wondering why their freight is late, lost, or held hostage by double brokers.

 

[theman]

Again, there are customers that live by 'live by the sword, die by the sword'. There are others that buy based on a good value quotient (which isn't the same as lowest price) that are the ones that you have to invest in more to get (and what I mean by invest, is time). The ones that jump TO you also jump AWAY from you very easily.

The relationship based shippers out there will not award freight without a pretty good due diligence.

 

[LrgCar]

Just saw this beauty roll through the inbox this morning. Someone is qouting their customers this BS thinking it will sell LOL. Someone correct me if im wrong but this isnt even fuel money for a reefer load.

Forgot to add its driver assist too

 

[Michael Ludwig]

It will sell on the customer side. TBH if you were the shipper you'd be jumping all over those rates like white on rice. The question is whether or not there are any carriers stupid enough, or desperate enough, to take them.